📈Massive Buybacks

Within 24 hours after the 14-day reward period ends, 80% of all treasury funds besides MP-DAI LP will be used to conduct a massive series of randomly timed and sized buybacks!

  • Shortly after the 14-day supply expansion period ends, the SendHouseCut() function calculates the amounts in all treasury bonds besides MP-DAI

    • 20% is sent to the contract operators, part of which will be donated to black cat-related charitable causes

    • The remaining 80% is earmarked for buybacks within 24 hours of the end of minting

  • The LiquidateTreasury() function is then called multiple times within 24 hours to conduct randomly timed and sized buybacks

    • This admin-only function accepts an integer (buybackPercentage, 100=1%) as input

    • buybackPercentage % of the remaining buyback funds are liquidated from all treasury bonds (except MP-DAI LP) to DAI

    • The DAI is used to purchase MP from the MP-DAI LP, and the purchased MP is burned

  • The finalizeLiquidation() function becomes publicly callable at the end of the 24-hour buyback period

    • Calls SendHouseCut() if it has not been called already

    • Executes LiquidateTreasury(10000), which performs all remaining buybacks from the 80% of non-LP treasury funds earmarked for buyback

    • This ensures that all designated funds are used for buyback even if the admins fail to call the other functions

In Snowdog DAO, buybacks were made on a new LP system that required a passphrase to trade. In contrast, this procedure ensures that buybacks are made on the same MINO-DAI LP pair that is used all throughout the protocol.

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